Acxiom Corp Earnings Cheat Sheet: Streak of Three Straight Quarters of Shrinking Margins Broken, but Net Income Falls

Acxiom Corporation (NASDAQ:ACXM) reported its results for the second quarter. Acxiom provides marketing technology and services that enable marketers to successfully manage audiences, personalize consumer experiences, and create profitable customer relationships.

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Acxiom Earnings Cheat Sheet for the Second Quarter

Results: Net income for Acxiom Corporation fell to $12.3 million (15 cents per share) vs. $13.3 million (16 cents per share) a year earlier. This is a decline of 7.4% from the year earlier quarter.

Revenue: Rose 2.9% to $300 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ACXM reported adjusted net income of 19 cents per share. By that measure, the company beat the mean estimate of 17 cents per share. Analysts were expecting revenue of $300.6 million.

Quoting Management: “The second quarter was in line with expectations and demonstrates Acxiom’s continuing role as a strong technology and strategic partner for our clients,” said Scott Howe, Acxiom CEO and president. “It also indicates we’re practicing good financial stewardship, which helps fuel our continuing innovation. Accelerating top-line growth and margins must be a focus of our future efforts.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 6.9% to $288.9 million in the first quarter. The figure rose 3.6% in the fourth quarter of the last fiscal year from the year earlier and climbed 5.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the first quarter with net income of 13 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 21 cents per share, down from 22 cents ninety days ago. The average estimate for the fiscal year is 74 cents per share, down from 77 cents ninety days ago.

Competitors to Watch: TeleTech Holdings, Inc. (NASDAQ:TTEC), CSG Systems Intl., Inc. (NASDAQ:CSGS), Teradata Corporation (NYSE:TDC), Convergys Corporation (NYSE:CVG), EMC Corporation (NYSE:EMC), Intl. Business Machines Corp. (NYSE:IBM), RightNow Technologies (NASDAQ:RNOW), Computer Sciences Corp. (NYSE:CSC), Syntel, Inc. (NASDAQ:SYNT), and Edgewater Technology Inc. (NASDAQ:EDGW).

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(Source: Xignite Financials)